EDITORIAL

 
   
A MEXICAN'S POINT OF VIEW
Mexico Towards 2006

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By Samuel Peña Guzman
Foreign Investment Coodinator State of Nuevo Leon

The questions the media and many of us make today are: What will happen next year after the elections? Who will be our next president? Will there be any economic upheaval? What will happen inside PRI with the division it is facing? Will Lopez Obrador win? Will there be capitals flight? Will PAN receive punishment votes this time?

Well, there are so many questions we read every day in Mexican and foreign media regarding Mexico; however, the bottom line is precisely the lack of certainty which did not exist some years ago, when everything could be figured in advanced. Nowadays we are unable to do so; as a result of the existing democracy.

In two of the three largest political parties, there is internal struggle to become a presidential candidate. Undoubtedly the hardest fight is the one inside PRI. Even if the candidate is to be elected democratically, there is the risk today of, if you allow me, "shooting one's own foot." The struggle between the former PRI General Secretary, Elba Esther Gordillo, and the former Chairman of PRI National Executive Committee (CEN) and now presidential pre-candidate, Roberto Madrazo, has left the balance of internal division that puts at stake unity in said party. On the other hand, we must mention that the other candidate - who comes from a group that opposes Madrazo - Arturo Montiel has expressed some disagreements. Both Elba Esther and Montiel are against Roberto Madrazo's candidacy; Madrazo, on the other hand, worked to become a candidate when he was CEN Chairman.

The issue to analyze here is if Roberto Madrazo's strength inside PRI will allow him to be a strong presidential candidate, for he would face Lopez Obrador, his number one political enemy. In addition to heading polls, Lopez Obrador will "naturally" become the choice of those inside PRI who do not support Madrazo as their candidate.

A significant number of PRI members - considering the above-mentioned divisions - will vote for any of the two remaining parties, either PAN or PRD. If we consider how highly popular PRD pre-candidate is, apparently he could reach an easier victory over his opponents. I am positive that this internal division PRI is suffering will be an additional political capital to the other two large parties, namely PAN and PRD. Undoubtedly, considering the circumstances, those parties will be benefited.

On the other hand, PAN, as we all know, is undergoing a democratic process, which we must recognize is exemplary to other parties. Felipe Calderon seems to have a strong internal support from his party, in spite of all expectations. Nowadays, Felipe Calderon is leader in the number of votes to become PAN presidential candidate, before his main competitor, who only a few months ago was the favorite candidate, Santiago Creel, identified as a person close to President Vicente Fox's Group.

Felipe Calderón has been rising and obtaining victories in the last two internal elections and is approaching the final victory; however, he has still to obtain the votes in Mexico City, home of former Minister of the Interior Santiago Creel. PAN will also "naturally" receive some of the votes denied to PRI due to its internal division. However, there is Fox effect, which a few years ago helped PAN to win not only the presidency but some other elections throughout Mexico and it seems as if this time it will be completely the opposite, mainly because of the disappointment most Mexican citizens have suffered.

The punishment votes received by PRI in 2000 are likely to be suffered by PAN itself in 2006. In these circumstances Lopez Obrador will once again "naturally" receive those votes.

PRD candidate for president seems to have great possibilities; however, there is some fear in a sector of the population about what a leftist government could mean after more than 20 years of neo-liberal political policies; therefore, the fear for possible economic upheaval and a flight of both capital and investment from Mexico.

However, I also consider that institutions in Mexico are strong enough and there are the required locks to prevent sudden changes that could generate a macroeconomic upheaval. I am convinced that the elections winner will hardly have a majority in the Congress, and there will therefore be a powers balance with the required locks I already mentioned. However, let's hope for the winning candidate to build the required "bridges" and work with the Congress to achieve the agreements required to implement the reforms Mexico so hardly requires. Unfortunately, the current administration has lacked the required political ability to reach agreements with the Congress, which results are the reality we all know. The good intentions that I do not doubt President Fox had, lacked the political tasks required to achieve the objectives set at the beginning of the administration.

Mexico is heading towards a highly competed presidential election and any of the candidates would hardly obtain an absolute majority of votes, let alone a majority in Congress.

Internal struggles in the parties have a political cost which will undoubtedly be capitalized by some contenders – no doubt they are aware of this - the issue is if they will understand it and try to avoid the division they are currently suffering. Transition towards 2006 is barely beginning and the questions we have today will be answered one at a time as elections' date approaches. However, I am convinced that economic soundness and stable institutions will prevent any damage that could arise from an "extreme left" government, because said government would be subject to a Congress where no party will have a majority.

Hector Samuel Peña LL.M, MPA Currently works as a Foreign Investment Coordinator for the State Government of Nuevo León, he has LLM Masters in Law from American University, Washington, College of Law, and a Masters in Public Administration from the George Washington University and has advised foreign companies who are expanding operations in to Mexico. He is also a professor at the State University of Nuevo Leon in Monterrey, Mexico and a Member of the Consejo Mexicano de Asuntos Internacionales COMEXI.
The point of view is strictly from the author and does not represent the vision on any of the author institutions relationships.

He can be reached at: samuel.pena@mexicoglobal.com